97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3865

 

Introduced 10/27/2011, by Rep. Jack D. Franks

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/16-106  from Ch. 108 1/2, par. 16-106
40 ILCS 5/16-106.4 new

    Amends the Downstate Teachers Article of the Illinois Pension Code. Requires an individual to be a member of the Teachers' Retirement System of the State of Illinois before the effective date of the amendatory Act in order for specified service as an officer or employee of a statewide teacher organization or as an officer of a national teacher organization to qualify as service as a teacher under the Code. Provides that any person whose membership in the Teachers' Retirement System of the State of Illinois is derived solely from employment as a substitute teacher and employment with a statewide teacher organization shall forfeit service credit in the System. Requires a refund of contributions made by those persons. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning the public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 16-106 and by adding Section 16-106.4 as follows:
 
6    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
7    Sec. 16-106. Teacher. "Teacher": The following
8individuals, provided that, for employment prior to July 1,
91990, they are employed on a full-time basis, or if not
10full-time, on a permanent and continuous basis in a position in
11which services are expected to be rendered for at least one
12school term:
13        (1) Any educational, administrative, professional or
14    other staff employed in the public common schools included
15    within this system in a position requiring certification
16    under the law governing the certification of teachers;
17        (2) Any educational, administrative, professional or
18    other staff employed in any facility of the Department of
19    Children and Family Services or the Department of Human
20    Services, in a position requiring certification under the
21    law governing the certification of teachers, and any person
22    who (i) works in such a position for the Department of
23    Corrections, (ii) was a member of this System on May 31,

 

 

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1    1987, and (iii) did not elect to become a member of the
2    State Employees' Retirement System pursuant to Section
3    14-108.2 of this Code; except that "teacher" does not
4    include any person who (A) becomes a security employee of
5    the Department of Human Services, as defined in Section
6    14-110, after June 28, 2001 (the effective date of Public
7    Act 92-14), or (B) becomes a member of the State Employees'
8    Retirement System pursuant to Section 14-108.2c of this
9    Code;
10        (3) Any regional superintendent of schools, assistant
11    regional superintendent of schools, State Superintendent
12    of Education; any person employed by the State Board of
13    Education as an executive; any executive of the boards
14    engaged in the service of public common school education in
15    school districts covered under this system of which the
16    State Superintendent of Education is an ex-officio member;
17        (4) Any employee of a school board association
18    operating in compliance with Article 23 of the School Code
19    who is certificated under the law governing the
20    certification of teachers;
21        (5) Any person employed by the retirement system who:
22            (i) was an employee of and a participant in the
23        system on August 17, 2001 (the effective date of Public
24        Act 92-416), or
25            (ii) becomes an employee of the system on or after
26        August 17, 2001;

 

 

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1        (6) Any educational, administrative, professional or
2    other staff employed by and under the supervision and
3    control of a regional superintendent of schools, provided
4    such employment position requires the person to be
5    certificated under the law governing the certification of
6    teachers and is in an educational program serving 2 or more
7    districts in accordance with a joint agreement authorized
8    by the School Code or by federal legislation;
9        (7) Any educational, administrative, professional or
10    other staff employed in an educational program serving 2 or
11    more school districts in accordance with a joint agreement
12    authorized by the School Code or by federal legislation and
13    in a position requiring certification under the laws
14    governing the certification of teachers;
15        (8) Any officer or employee of a statewide teacher
16    organization or officer of a national teacher organization
17    who is certified under the law governing certification of
18    teachers, provided: (i) the individual had previously
19    established creditable service under this Article, (ii)
20    the individual files with the system an irrevocable
21    election to become a member, and (iii) the individual does
22    not receive credit for such service under any other Article
23    of this Code, and (iv) the individual was a member of the
24    System before the effective date of this amendatory Act of
25    the 97th General Assembly;
26        (9) Any educational, administrative, professional, or

 

 

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1    other staff employed in a charter school operating in
2    compliance with the Charter Schools Law who is certificated
3    under the law governing the certification of teachers.
4        (10) Any person employed, on the effective date of this
5    amendatory Act of the 94th General Assembly, by the
6    Macon-Piatt Regional Office of Education in a
7    birth-through-age-three pilot program receiving funds
8    under Section 2-389 of the School Code who is required by
9    the Macon-Piatt Regional Office of Education to hold a
10    teaching certificate, provided that the Macon-Piatt
11    Regional Office of Education makes an election, within 6
12    months after the effective date of this amendatory Act of
13    the 94th General Assembly, to have the person participate
14    in the system. Any service established prior to the
15    effective date of this amendatory Act of the 94th General
16    Assembly for service as an employee of the Macon-Piatt
17    Regional Office of Education in a birth-through-age-three
18    pilot program receiving funds under Section 2-389 of the
19    School Code shall be considered service as a teacher if
20    employee and employer contributions have been received by
21    the system and the system has not refunded those
22    contributions.
23    An annuitant receiving a retirement annuity under this
24Article or under Article 17 of this Code who is employed by a
25board of education or other employer as permitted under Section
2616-118 or 16-150.1 is not a "teacher" for purposes of this

 

 

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1Article. A person who has received a single-sum retirement
2benefit under Section 16-136.4 of this Article is not a
3"teacher" for purposes of this Article.
4    A person who is a teacher as described in item (8) of this
5Section may establish service credit for similar employment
6prior to becoming certified as a teacher if he or she (i) is
7certified as a teacher on or before the effective date of this
8amendatory Act of the 94th General Assembly, (ii) applies in
9writing to the system within 6 months after the effective date
10of this amendatory Act of the 94th General Assembly, and (iii)
11pays to the system contributions equal to the normal costs
12calculated from the date of first full-time employment as
13described in item (8) to the date of payment, compounded
14annually at the rate of 8.5% per year for periods before the
15effective date of this amendatory Act of the 94th General
16Assembly and for subsequent periods at a rate equal to the
17System's actuarially assumed rate of return on investments.
18However, credit shall not be granted under this paragraph for
19any such prior employment for which the applicant received
20credit under any other provision of this Code.
21(Source: P.A. 93-320, eff. 7-23-03; 94-1111, eff. 2-27-07.)
 
22    (40 ILCS 5/16-106.4 new)
23    Sec. 16-106.4. Forfeiture of service credit; refund of
24contributions. Any person whose membership in the Teachers'
25Retirement System of the State of Illinois is derived solely

 

 

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1from employment as a substitute teacher and employment with a
2statewide teacher organization shall forfeit service credit in
3the Teachers' Retirement System of the State of Illinois and
4shall receive a refund of the employee contributions and an
5amount deemed by the board to be equal to the investment
6returns attributed to the employee contributions.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.